Week Thoughts: The Heat is On

Stocks were negative, treasuries, oil and natural gas were sold too. Despite all that market pressure, midstream managed to outperform. The annual MEIC conference in Florida this week reinforced trends across midstream, and the conference seemed to remind investors about the investment case for some of the smaller names, which may have helped.

The House passed a first pass on the big bill, which sent shockwaves across clean energy and renewable developing utility stocks. The largest utility in the U.S., NextEra Energy, declined 6.4% on Thursday and finished the week down 9.6%. Renewable development challenges in the face of growing power demand are net positive for natural gas, because more of that will be needed, to the benefit of midstream stocks. Nothing is final, of course, and the Senate will likely rewrite the renewable aspects of the House bill over the summer, but the current bill was a major across the market this week.

Enjoy the long weekend everyone. Crank up those propane grills, fuel up the family trickster, and if you’re like me, turn your Nest back to heat mode and get in a few final heating degree days. Do your part for energy demand!